Until recently, the transfer of professional teamplayers between European clubs
placed limits on the operations of a free market in that there were rules restricting the
terms placed on such transfers. However, the ruling of the European Court of Justice
in December 1995 in the "Bosman case" declared that such arrangements were contrary
to the provisions of article 48 of the EEC treaty. The effects of the ruling –a redistribution
of property rights from the clubs to the players- induced an increase of average
player salaries and longer contract duration. Using data from the National Basketball
Association (NBA) the paper discusses a highly similar reallocation of property
rights in North America and tests empirically the -so far- inconclusive question, if
remuneration and contract-length are complementary or substitutes.